Back to the Basics: In Retirement Planning, Time Waits for No One
If there is one asset that has become more valuable than all others, it is time. It is finite, making it scarce. It is fluid, making it difficult to grasp. It is often misunderstood, allowing it to escape our attempts at mastery. In fact, time is the very asset we would willingly trade all others for—if only we could have more of it.
At its core, retirement planning is about managing time more than anything else. If you knew you had only a short time left, you would not need much planning to make your money last. Conversely, if you expected to live a long life, careful planning would be essential to ensure your nest egg endures. Retirees have a unique relationship with time: they must plan for a 30 or 40-year retirement while also meeting immediate income needs. Bills must be paid each month, requiring accessible funds. This creates a complex financial balancing act: investing for the future while ensuring financial stability in the present.
As you consider the years ahead in retirement, have you thought about how time can work for or against you? Here are some key considerations to help you plan wisely:
Managing Free Time
If you worked full-time, including commuting and taking two weeks of vacation each year, you likely dedicated about 2,500 hours annually to your job. How will you manage these 2,500 hours now that they are freed from formal employment? Do you have a plan for your ‘time asset’?
Long-Term Care Planning
Approximately 50% of retirees will require some level of long-term care. On average, those needing nursing care receive it for about two and a half years. While much of this care is provided at home and often by family members at no explicit cost, do you and your caregivers have a strategy to fund these expenses if needed?
Market Volatility
Bear markets typically occur every seven years. We have seen major downturns in 2008, 2015, and during the COVID-19 pandemic, all of which significantly impacted growth-focused investment portfolios. How will you respond to a market decline? Does your plan ensure that you can still meet your income needs during a downturn?
Estate and Legacy Planning
If an untimely death occurs, have you taken steps to ensure the orderly administration of your estate? Are your legacy wishes clearly documented and understood by your loved ones?
If you are unsure how to address any of these concerns, call or email us—we are here to help you navigate these challenges.
Time is a peculiar force—often a cruel master. It can slip away unnoticed, leaving us wondering where it went, or it can drag on, urging us to find ways to make it pass more quickly (been in a dentist’s chair lately?). While we cannot escape time’s relentless grasp, we can take active measures to make the most of it. Appreciate the time you have, use it wisely, and enjoy the journey ahead.
